The nominal interest rate compounded quarterly, ¿(4) is 6%. Let ¿ be the annual effective interest rate, d be the annual effective discount rate, d(12) be the nominal discount rate compounded monthly and be the annual constant force of interest. Calculate i + 2d + 3d(¹2) + 46. A 59.14% B 59.34% C 59.54% D 59.74% E 59.94%

The nominal interest rate compounded quarterly, ¿(4) is 6%. Let ¿ be the annual effective interest rate, d be the annual effective discount rate, d(12) be the nominal discount rate compounded monthly and be the annual constant force of interest. Calculate i + 2d + 3d(¹2) + 46. A 59.14% B 59.34% C 59.54% D 59.74% E 59.94%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 8% . 144.20% 1.94% 36.05% 7.77% b. Nominal interest rate compounded monthly that is equivalent to 3.5% compounded quarterly. 31.78% 2.65% 3.49% 0.29% c. Nominal interest rate compounded monthly that is equivalent to 6% compounded annually. 5.84% 1,214.64% 0.49% 101.22%
The nominal interest rate compounded quarterly, ¿(4) is 6%. Let ¿ be the annual effective interest rate, d be the annual effective discount rate, d(12) be the nominal discount rate compounded monthly and be the annual constant force of interest. Calculate i + 2d + 3d(¹2) + 46. A 59.14% B 59.34% C 59.54% D 59.74% E 59.94%
Compare the annual percentage yield (APY) of loan A, with nominal interest rate 10% and quarterly compounding to loan B, which has nominal interest rate 12% and daily compounding. Round answers to one decimal place. APY Loan A: APY Loan B: I %
2.) What nominal rate compounded monthly is equivalent to 11% effective interest? A.) 10.48% B.) 11.48% C.) 12.48% D.) 13.48%
Assume an effective compound interest rate i= 3% per annum. Compute the following equivalent rates. In each case, enter your answer as a percentage. a) The nominal interest rate payable semi-annually Number % Enter an answer correct to 4 decimal places. b) The effective interest rate payable quarterly Number Enter an answer correct to 2 decimal places. c) The effective rate of discount per annum Number Enter an answer correct to 2 decimal places. d) The nominal rate of discount payable monthly Number % Enter an answer correct to 4 decimal places.
Given an interest rate of 4.0% compounded monthly, determine the effective rate of interest. Answer as a percentage rounded to two decimal places. reff = Check %
The principal P is borrowed at simple interest rate r for a period of time t. Find the loan's future value, A, or the total amount due at time t. P=$4000, r= 7.5%, t= 9 months The future value is $ (Simplify your answer. Type an integer or a decimal.)
If i= 14.8% per year, compounded monthly What is the effective interest rate per semiannual? (ABET, SO1) Select one: O a. 15.85% O b. 7.63% O c 74% O d. 1.23% O e. 7.91%
Assume an effective compound interest rate i = 6% per annum. Compute the following equivalent rates. In each case, enter your answer as a percentage. a) The nominal interest rate payable semi-annually 数字 Enter an answer correct to 4 decimal places. % b) The effective interest rate payable quarterly 数字 % Enter an answer correct to 2 decimal places. c) The effective rate of discount per annum 数字 Enter an answer correct to 2 decimal places. % d) The nominal rate of discount payable monthly 数字 % Enter an answer correct to 4 decimal places.
Assume an effective compound interest rate i In each case, enter your answer as a percentage. a) The nominal interest rate payable semi-annually 数字 Enter an answer correct to 4 decimal places. % b) The effective interest rate payable quarterly 数字 Enter an answer correct to 2 decimal places. % c) The effective rate of discount per annum 数字 Enter an answer correct to 2 decimal places. % 4% per annum. Compute the following equivalent rates. d) The nominal rate of discount payable monthly 数字 Enter an answer correct to 4 decimal places. %
Which of the following nominal rates will earn the most interest? 5% compounded quarterly (j4). 5% compounded monthly (j12). 5% compounded semi-annually (j2). 5% compounded annually (jj).
Assume that l2t = 0.30% and that it = 0. If the one-year interest rate is 5% and the two-year interest rate is 5.75%, then it+1 equal to: is OA. 6.05% O B. 5.90% O C. 5.30% O D. 5.45%

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